CCS consults on the proposed merger between Western Digital and SanDisk Corporation

11 December 2015

1. The Competition Commission of Singapore (“CCS”) is seeking feedback on the merger between Western Digital Corporation (“WDC”) and SanDisk Corporation (“SanDisk”), (collectively “the Parties”).

2. CCS received a notification for decision on 4 December 2015 from the Parties with regard to the proposed acquisition of sole control by WDC of all the common stock in SanDisk (“the Proposed Acquisition”).

3. The notification is made under section 57 of the Competition Act, in relation to section 54 of the Competition Act which prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

4. CCS understands from the notification that WDC develops and manufactures storage solutions for the creation, management and preservation of digital content. They produce HDDs for a numbers of users, enterprise class SSDs (“Enterprise SSDs”), hybrid drives as well as external and business storage solutions. SanDisk is a digital storage producer that specialises in flash memory solutions. They produce flash storage solutions, including Enterprise SSDs and SSDs for consumer-operated devices, removable cards, USB flash drives and embedded flash products for mobile and connect applications and consumer electronics. SanDisk also deals with software for storage solutions, e.g. for music and video players.

5. The Parties submitted that they only overlap globally in the supply of Enterprise SSDs.

6. The Parties are of the view that the Proposed Acquisition, when carried into effect, will not result in a substantial lessening of competition for Enterprise SSDs in Singapore or worldwide, or result in any adverse effect relative to the counterfactual scenario. Further, the Parties are of the view that the Proposed Acquisition will not give rise to coordinated, non-coordinated or vertical effects.

Public Consultation

7. CCS is inviting public feedback in relation to the Proposed Acquisition.

8. More information on the public consultation can be accessed and downloaded from the CCS website at www.ccs.gov.sg under the section “Public Register and Consultation”. Submissions should reach CCS no later than 23 December 2015. If the submission/correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

About The Competition Commission of Singapore (CCS)

9. CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.

For more information, please visit www.ccs.gov.sg.

For media clarification, please contact

Ms Loy Pwee Inn
Senior Assistant Director
Communications
Strategic Planning Division
Competition Commission of Singapore
Email : LOY_Pwee_Inn@ccs.gov.sg
DID : +65 6325 8313

Ms Grace Suen
Assistant Director
Communications
Strategic Planning Division
Competition Commission of Singapore
Email : Grace_SUEN@ccs.gov.sg
DID : +65 6325 8216